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Pension Paid As Lump Sum

Posted: Tue Jul 04, 2017 12:09 am
by Motogopher
My employer offers a lump-sum payment option in place of the pension payment. I have the tool working well with the 401k savings, pension and SS. I want to look at options with the lump sum payment and turn off the pension payment to see the effect. How would I enter the lump-sum payment?

Re: Pension Paid As Lump Sum

Posted: Tue Jul 04, 2017 6:59 am
by jimr
The answer depends on the tax treatment of the lump sum. I'm not that up on pension distribution taxation, but assuming the lump sum payment can be rolled into a 401k or IRA, it should be ok to enter it as a tax-deferred savings cash flow.